American Debt Guide: Bankruptcy & Debt Relief — Explained by State
This bankruptcy guide from American Debt Guide covers the top 10 most populous states in the U.S. — a free, state-by-state resource for Americans dealing with overwhelming debt. Whether you need a fast fresh start through Chapter 7 bankruptcy or a structured repayment plan through Chapter 13 bankruptcy, every guide on this site is built from verified federal court data, U.S. Trustee income figures, and state statutes — no paywalls, no upsells. Use the links below to find your state and understand your options in 2026.
Chapter 7 vs. Chapter 13 Bankruptcy: Which Is Right for You?
The two most common forms of personal bankruptcy serve very different purposes. Understanding the difference is the first step toward choosing the right path for your situation. Bankruptcy filing statistics by state are published annually at uscourts.gov.
| Factor | Chapter 7 | Chapter 13 |
|---|---|---|
| How it works | Liquidation — most unsecured debt discharged | Reorganization — repay through 3–5 year plan |
| Timeline | 3–5 months from filing to discharge | 3–5 years to complete the repayment plan |
| Income requirement | Must pass the means test | Must have regular income; debt limits apply |
| Keep your home? | Only if current on mortgage | Yes — catch up on arrears through the plan |
| Keep your car? | Only if current and within exemption | Yes — cram-down may reduce loan balance |
| Court filing fee | $338 | $313 |
| Best for | People with limited income and few assets | Homeowners or those with higher income |
Chapter 7 Bankruptcy — State Guides
Each guide covers the means test income limits, exemptions, attorney fees by district, court locations, and step-by-step filing instructions for your state.
- Chapter 7 Bankruptcy in California — System 1 vs System 2 exemptions, means test, and California district courts.
- Chapter 7 Bankruptcy in Texas — unlimited homestead exemption, means test limits, and filing steps for Texas residents.
- Chapter 7 Bankruptcy in Florida — unlimited homestead exemption, wildcard amounts, and Florida court locations.
- Chapter 7 Bankruptcy in Illinois — exemptions, median income table, and Northern/Southern/Central district details.
- Chapter 7 Bankruptcy in Ohio — Ohio exemption options, means test figures, and attorney fee ranges.
- Chapter 7 Bankruptcy in Georgia — exemptions, means test limits, and court districts for Georgia residents.
- Chapter 7 Bankruptcy in Tennessee — exemptions, means test limits, and court districts for Tennessee residents.
Chapter 13 Bankruptcy — State Guides
Chapter 13 lets you keep your home, reduce your car loan through a cram-down, and repay debt over a 3–5 year court-approved plan. Find your state guide below.
- Chapter 13 Bankruptcy in California — repayment plan options, debt limits, and California district court details.
- Chapter 13 Bankruptcy in Texas — plan length, cram-down rules, attorney fees by district, and Texas court locations.
- Chapter 13 Bankruptcy in Florida — homestead protections, repayment plan options, and Florida district court details.
- Chapter 13 Bankruptcy in Illinois — debt limits, plan structure, no-look attorney fees, and Illinois district court details.
- Chapter 13 Bankruptcy in Ohio — repayment plan options, cram-down rules, attorney fees, and Ohio district court information.
- Chapter 13 Bankruptcy in Georgia — repayment plan structure, no-look attorney fees, and Georgia district courts.
- Chapter 13 Bankruptcy in Tennessee — repayment plan structure, no-look attorney fees, and Tennessee district courts.
Average Debt by State
Understand how debt levels vary across America. These state guides break down average mortgage, student loan, and credit card debt, with comparisons to national averages.
- Average Debt in California — Mortgages, student loans, and credit cards. Why California debt exceeds national average.
- Average Debt in Texas — Credit cards, student loans, and mortgages. Compare to national averages and debt reduction tips.
- Average Debt in Florida — Credit cards, mortgages, and student loans. Compare to national averages and reduction strategies.
- Average Debt in Georgia — Mortgages, student loans, and credit cards. Compare to national average and reduction strategies.
- Average Debt in Illinois — Mortgages, student loans, and credit cards. Compare to national average and debt strategies.
- Average Debt in Ohio — Mortgages, student loans, and credit cards. Why Ohio debt is below national average. Reduction strategies.
- Average Debt in Tennessee — Mortgages, student loans, and credit cards. Why TN debt is below average. No state income tax advantage.
Bankruptcy Cost by City
Attorney fees vary significantly by metro area. These city guides break down Chapter 7 and Chapter 13 attorney fee ranges, no-look fee guidelines, and local court information.
- Bankruptcy Cost in Los Angeles — attorney fee ranges and court information for Los Angeles and the Central District of California.
- Bankruptcy Cost in Houston — Chapter 7 and Chapter 13 attorney fee ranges for Houston and the Southern District of Texas.
- Bankruptcy Cost in Dallas — cost breakdown for Chapter 7 and Chapter 13 in the Dallas/Fort Worth metro.
- Bankruptcy Cost in Miami — attorney fee ranges and court information for Miami and South Florida.
- Bankruptcy Cost in Orlando — Chapter 7 and Chapter 13 costs for Orlando and the Middle District of Florida.
- Bankruptcy Cost in Chicago — Chapter 7 and Chapter 13 attorney fees for Chicago and Northern Illinois.
- Bankruptcy Cost in Columbus — Columbus area attorney fees and Southern District of Ohio filing information.
- Bankruptcy Cost in Atlanta — attorney fees, court locations, and filing information for Atlanta area residents.
- Bankruptcy Cost in Phoenix — attorney fees and court information for Phoenix and the District of Arizona.
What Debts Can Bankruptcy Eliminate?
Not sure which applies to you? This bankruptcy guide is organized by state so you can find your exact income limits, exemptions, and filing steps in one place. Every bankruptcy guide page on this site is sourced from federal court records and U.S. Trustee data — no guesswork, no outdated figures. Select your state above to get started with the bankruptcy guide for your area.
Debts Typically Discharged
- Credit card balances
- Medical bills
- Personal loans and payday loans
- Utility arrears
- Most older civil judgments
- Lease and contract obligations (in most cases)
Debts That Cannot Be Discharged
- Child support and alimony
- Most federal and state tax debts
- Student loans (except in rare hardship cases under the Brunner test)
- Criminal fines and restitution
- Debts from fraud or willful misconduct
Bankruptcy Guides & Resources
Free guides to help you understand the bankruptcy process, make informed decisions, and plan your path forward.
- Chapter 7 vs Chapter 13 Bankruptcy: How to Choose the Right One — compare costs, timelines, qualifications, and outcomes.
- What Happens at the 341 Meeting of Creditors — what the trustee asks, what to bring, and how to prepare.
- Can You File Bankruptcy Without a Lawyer? — pros, cons, and when hiring an attorney is worth it.
- How to Rebuild Credit After Bankruptcy — a realistic month-by-month timeline for recovering your score.
- 5 Debts Bankruptcy Can’t Erase — student loans, taxes, child support, and what to do about them.
Frequently Asked Questions About Bankruptcy
What is the difference between Chapter 7 and Chapter 13 bankruptcy?
Chapter 7 is a liquidation bankruptcy that eliminates most unsecured debts in 3–5 months. You must pass the means test to qualify. Chapter 13 is a reorganization bankruptcy where you repay some or all of your debt through a 3–5 year court-approved plan. Chapter 13 is used by people who want to keep their home, have higher income, or have assets they want to protect.
How much does it cost to file bankruptcy?
The federal court filing fee is $338 for Chapter 7 and $313 for Chapter 13. These fees are the same in every state. Attorney fees are additional and vary by state and district — typically $1,000–$2,000 for Chapter 7 and $3,000–$5,000 for Chapter 13. See the city and state guides above for district-specific attorney fee ranges.
Will bankruptcy stop creditor calls and lawsuits?
Yes. Filing either Chapter 7 or Chapter 13 triggers an automatic stay — a federal court order that immediately stops all collection calls, wage garnishments, lawsuits, and most foreclosure actions. The automatic stay takes effect the moment your case is filed with the court.
Can I keep my house if I file bankruptcy?
In Chapter 13, yes — as long as you continue making mortgage payments and catch up on any arrears through your repayment plan. In Chapter 7, you can keep your home if you are current on your mortgage and your equity falls within your state’s homestead exemption. Several states including Texas and Florida have unlimited homestead exemptions.
How long does bankruptcy stay on my credit report?
Chapter 7 bankruptcy remains on your credit report for 10 years from the filing date. Chapter 13 remains for 7 years. However, many filers begin rebuilding credit within 1–2 years of discharge by using secured credit cards and maintaining on-time payments on remaining accounts.
Do I need a lawyer to file bankruptcy?
You are legally permitted to file bankruptcy without an attorney — this is called filing pro se. However, bankruptcy law is complex and errors can result in case dismissal or loss of exemptions. Most bankruptcy attorneys offer free consultations. See your state guide for attorney fee ranges in your district.
What is the bankruptcy means test?
The means test determines whether your income is low enough to qualify for Chapter 7. If your household income is below your state’s median income for your household size, you automatically pass. If your income is above the median, a second calculation applies to determine whether you have enough disposable income to fund a Chapter 13 plan. Current state median income figures are published at justice.gov/ust/means-testing. National filing statistics are available at uscourts.gov.
How do I know which bankruptcy chapter is right for me?
Start by checking your state’s median income table — if your household income is below the limit, Chapter 7 is likely available to you. If you own a home with significant equity, are behind on mortgage payments, or have income above the means test threshold, Chapter 13 may be the better option. Every state guide on this site includes the means test income table and a side-by-side comparison of your options.
About American Debt Guide
American Debt Guide is a free resource built on verified federal data, U.S. Trustee statistics, state bankruptcy law, and attorney expertise. Every page is researched, fact-checked, and updated regularly to reflect current exemption amounts, filing fees, and bankruptcy procedures.
We don’t sell bankruptcy services. We’re independent information — built to help you make informed decisions about debt relief in 2026.
Start with your state above, or explore a specific city to see bankruptcy costs and options near you.